AmGeneral eyes 2 to 3 per cent growth in premium in FY19

KUALA LUMPUR: AmGeneral Insurance Bhd is eyeing an increase of between two per cent and three per cent in gross written premium ( GWP) in the current fiscal year after recording RM1.5 billion worth of GWP for the financial year ended March 31, 2018 (FY18).

Chief executive officer Derek Robert said the group was confident of achieving the target despite the challenges in the market.

“We foresee a single- digit growth in the current year across the industry, which is relatively slow compared with the seven per cent to eight per cent growth achieved about five to six years ago, as the industry is facing a lot of changes.

“The growth slowed down to about two per cent to three per cent over the last three years, so we are not expecting any exponential growth this year,” he told reporters after the launch of AmGeneral’s enhanced auto365 Comprehensive Premier yesterday.

He said the company launched its liberalised product, auto365 Comprehensive Premier, in October 2017, after the first phase of the Liberalisation of the Motor and Fire Tariff was introduced by Bank Negara Malaysia on July 1, 2016.

The liberalisation was effec-

We foresee a single-digit growth in the current year across the industry, which is relatively slow compared with the seven per cent to eight per cent growth achieved about five to six years ago, as the industry is facing a lot of changes. Derek Rober,t Derek Robert executive officer

tive on July 1, 2017, whereby the premium pricing for motor comprehensive and motor third party fire and theft products were liberalised where premium pricing will be determined by individual insurers and takaful operators.

Robert said the company managed to package its auto365 comprehensive premier product after three to four months of liberalisation, and after understanding the happenings in the market and customer needs.

He said auto365 comprehensive premier contributed about 25 per cent of all the motor insurance sale for the company.

“This showed a real appetite for something different in the market, and led to our introduction of more enhanced product.

“To achieve 25 per cent contribution to total sale over six to nine months was really good, hence, we think we could get 35 per cent sales contribution with the introduction of the new product ” he said. Robert said the product liberalisation would also give the company the opportunity to penetrate the non-motor sector, which traditionally is not its growth area.

Currently, the non-motor segment constitutes about 22 per cent of sales and the company hoped to grow this to about 30 per cent in two years’ time, he added.

Meanwhile, chief distribution officer, Grace Quah said the company would leverage its new products for growth.

She said product liberalisation gave the chance for consumers to choose the products that they wanted.

The new products, Quah said, had enhanced its all-risk features to serve the coverage gap between a standard comprehenesive and third party, fire and theft motor policy.

“We hope that these new and enhanced products will equip our valued partners with competitive advantage,” she added.